Homeowners Protection Act (HPA or PMI Cancellation Act) requires lenders to remove the PMI payments once the loan to the original value hits 78%, and payments are current. HPA does not apply to Government loans such as FHA and VA. Contact your lender for information on these types of loans.
Borrowers can expedite this process by paying down on their mortgage to 80% and below and contracting the lender to get their instruction on the additional process of formally having the mortgage insurance removed. Usually they will require the request to come in writing.
With Value of homes increasing, it may be a good time to look into requesting the removal of your PMI based on current value. If you have owned your home for 2 years or more and the servicer determines the value of your home is 75% of the mortgage amount then the borrower can request the removal of the PMI.
If the value has increased due to a substantial amount of improvements to the property so that the loan to value is less than 80%, then the borrower can request removal within 2 years.
Note that you will typically need to have made timely payments for the last 12 months.
For other helpful information check out the following links
CFPB: When can I remove Private Mortgage Ins (PMI)?
For more information call (205-266-5669) or email (jmarbury@1stfed.com) John
If you would like to apply for a new click on my online application: https://bytepro.1stfed.com/ConsumerPortal/?lo=jmarbur1
Or call me and I can fill it out over the phone.
Thanks!
John
John Marbury
205-266-5669
NMLS #740833
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